HR Standard Element 7: REWARD

7.1  D E F I N I T I O N

Reward is a strategy and system that enables organisations to offer an employment value proposition to employees in accordance with fair and appropriate levels of reward in recognition for their contribution to the achievement of agreed deliverables in line with organisational objectives and values. (An employment value proposition is the “deal” – what we offer as a total employment experience to employees  and what we demand in exchange.)


7.2.1  To design and implement an appropriate employment value proposition aligned with organisation culture and objectives, and achieving a balance between the needs of the employer and employee.

7.2.2  To deliver a fair and equitable reward system or process and system that is ethical, cost effective and sustainable.

7.2.3  To ensure compliance with organisational governance principles and practices aligned to national governance codes of practice and relevant legislation.

7.2.4  To ensure your employment value proposition is in line with current industry and sector norms.


7.3.1  Establish a remuneration committee or other appropriate mechanisms for determining reward structures, philosophy and policy.

7.3.2  Formulate a remuneration strategy and policy for your organisations that attracts, motivates and retains staff.

7.3.3  Ensure the reward strategy is aligned with appropriate legislative, governance and other directive requirements.

7.3.4  Identify and implement policies, practices and procedures that enable the rewards system to operate effectively.

7.3.5  Ensure understanding and awareness of the reward system.

7.3.6  Align and integrate reward with other HR practices (e.g. performance review) for optimal impact.

7.3.7  Benchmark and review the reward policy, process and practices at regular intervals to ensure relevance and impact (pay scales, benefits, incentives,  etc).

7.4  NOTES

This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, HR risk management, performance management and HR measurement.

HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs:

  • Rewards policy and systems
  • Benchmarking
  • Job Evaluation
  • Salary structuring
  • Salary and wage reviews
  • Payroll
  • Incentives
  • Employee Conditions of Employment and Benefits

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s